10 April, 2020

Vivo Maintains Its Sales Growth During This Critical Period

No one has expected the outbreak of Covid-19 pandemic would
happen in the beginning of the year in 2020. The sudden outbreak has greatly affected ones’ life,
while the smartphone industry is no exception being affected during the pandemic.

At present, vivo's 5G mobile phone market performance has reached and exceeded the public
expectations. As compared to the first quarter in 2019, vivo has resulted the incremental sales of
10% in early March this year.

Following vivo’s incremental sales and the growth of manufacturing this year, it has never seen to be
easily achieved both during this critical period. Therefore, it has all resulted from the efforts being
taken by vivo in the past years, especially vivo’s strategic 5G layout since its first inception in 2018.
With the "National 5G" strategy, vivo has launched a variety of 5G mobile smartphones in multiple
price range. Entering 2020, vivo has continuously released 5G mobile phones such as iQOO 3, vivo Z6
and NEX 3S. As early as 2018, vivo has started 5G strategic planning, making efforts in two aspects of
technology reserve and upstream supply chain, adjusting product strategy and inventory
management accordingly. For instance, vivo and Samsung jointly developed a 5G SoC platform to
accelerate the process of 5G popularisation.

In August 2019, vivo took the lead in releasing the flagship iQOO Pro 5G, with this model, vivo has
captured a 54.3% market share in the Chinese 5G mobile phone market in the current quarter.

Following the launch of the 5G version of iQOO Pro and NEX 3 last year, including the X30 series that
was released at the end of 2019, vivo's new mid-to-high-end new products are all 5G mobile phones,
4G version will no longer be launched simultaneously.

The advanced layout in the 5G field has allowed vivo's 5G mobile phones to reach the maturity of 4G
mobile phones in terms of cost control and manufacturing – providing affordable luxurious
experience for the users.

As for the problem of insufficient production that plagues various manufacturers at this stage, vivo
relies on the absolute advantages of its own factories and has effectively control of the epidemic
situation. At present, the production is in a stable rising stage.